FX.co ★ Hot forecast for EUR/USD on 07/04/2023

One of Friday's highlights is the U.S. Department of Labor report. The market will focus on the unemployment rate, which is likely to fall from 3.6% to 3.5%. That fact is enough for the dollar to rally. However, the growth may be somewhat slowed by the number of new jobs created outside of agriculture, which should be around 250,000. While that is a pretty good result, 311,000 jobs were created in the previous month. In other words, this points to a slowdown and possible signs of deterioration in the labor market, which will limit the dollar's growth. It is worth noting that today is a holiday in both the EU and the US, so we will probably see the market's reaction to this report by Monday.

EUR/USD is in a stage of correction after reaching a weekly high. Despite the correction being small in scale, the market sentiment is still bullish, which we can see by how the euro has almost fully recovered from the decline in February.

On the four-hour and daily charts, the RSI is hovering in the upper area of the 50/70 indicator, which points to the bullish sentiment.

On the same charts, the Alligator's MAs are headed upwards, which reflects the quote's movement.

Outlook

The psychological level of 1.1000 still acts as a resistance level, which has reduced the volume of long positions. In case the price crosses this level, there is a high probability of prolonging the medium-term uptrend. Until then, the quote will be in a stage of a correction or stagnation.

The complex indicator analysis points to an upward cycle in the short-term, medium-term and intraday periods.